Mentor RIA Consulting - Allowing you to focus on what you do best
RSS

Recent Posts

Sales Incentives: Who Really Pays?
Could an IRA Trust Work for Your Plan?
Is the Pandemic Changing Your Plans?
Form CRS: Prop or Flop?
Using 401(k) Loans for Short Term Liquidity

Categories

Clients
Compliance
General
Investing
Planning
RIA Business
Training
powered by

My Blog

Robo Adviser or Financial Adviser?

You have probably been hearing a lot about the new robo advisers and how they are changing the financial industry. Some of you can’t wait to try one out while others say they will not even consider it. Before you get too excited – one way or the other – it might be best to get an understanding of what a robo adviser can and cannot do and when you might want to use one.

The advice to be obtained by using a robo adviser is focused on portfolio management – allocation of a client’s portfolio assets including stocks, bonds, funds , and ETFs – and uses portfolio management software and techniques very much the same as most financial advisers use. The online availability of such advice allows clients to obtain the advice without the necessity of visiting an individual adviser and also without the costs and account size restrictions imposed by many individual advisers and their firms.

Low expense, quality advice – what’s not to like? Your robo adviser, unlike some financial advisers, cannot give you personalized advice about non-investment matters or even some investment related issues. That means you will not be getting advice from your robo adviser on setting and reaching life goals such as retirement timing and spending. There will not be help in planning for business succession, charitable gifting, estate planning and the like. Your robo adviser will not be there to offer encouragement and comfort when the markets drop, you send children or grandchildren to college, you lose a family member and experience a wide variety of life events that inevitably tie into your finances.

Remember, if it is simply advice on choosing a few investments, the robo adviser is a very good bet. But if it is about something more in your financial life, you will need something better, and that is an adviser able to see the big picture and relate to your needs. 

3 Comments to Robo Adviser or Financial Adviser? :

Comments RSS
MCX Trading Tips on Wednesday, July 13, 2016 7:52 AM
Thank you for this extremely brilliant blog for flexible payment. This is the right place where there is something for everyone! I was looking for this kind of information for such a long time.
Reply to comment


MCX HNI Tips on Tuesday, November 29, 2016 3:38 AM
I like the way you tied all the details about financial adviser
Reply to comment


alisha mishra on Wednesday, May 9, 2018 8:43 AM
Wonderful article! After visiting your content I've found many important information about investment which information are really helpful for me. Thanks for informing me.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment
Website Builder provided by  Vistaprint